In a report released on July 2, Counterpoint analysts said the change reflects the volatile nature of the global electric vehicle market. According to CNBC estimates, BYD’s pure electric vehicle sales in the second quarter increased nearly 21% from a year earlier to 426,039 units. Tesla’s sales in the same period fell 4.8% to 443,956 vehicles.

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BYD is on track to surpass Tesla in pure electric vehicle sales. Photo: BYD

In 2023, BYD’s total output – including pure electric vehicles and hybrids – will reach more than 3 million vehicles, higher than Tesla’s output of 1.84 million vehicles for the second consecutive year. However, BYD produces 1.6 million BEVs and 1.4 million hybrids, so it has not yet surpassed the American electric car company in pure electric vehicle sales.

BYD also lost its overall electric vehicle crown to Tesla in the first quarter of this year.

China still dominates the BEV market, with BYD leading the way, according to Counterpoint. BEV sales in the mainland are estimated to be four times higher than North America by 2024.

The research firm predicts Beijing will continue to hold more than 50% of global BEV sales until 2027 and equal North America and Europe combined by 2030.

Last month, the European Union announced that it would impose additional taxes on Chinese electric vehicles from July 4. Specifically, three automakers, BYD, Geely, and SAIC, will bear new taxes of 17.4%, 20%, and 38.1%, respectively, in addition to the standard 10% tax on imported electric vehicles in general.

The new EU tariffs are intended to level the playing field for European electric carmakers, which are struggling to compete with low-cost Chinese options, said Liz Lee, associate director at Counterpoint. This could push Chinese automakers to look to emerging markets such as the Middle East, Africa, Latin America, Southeast Asia, Australia and New Zealand.

Global BEV sales are expected to reach 10 million units by 2024 amid a continued decline in sales of internal combustion engine vehicles, driven by efforts to improve the cost-effectiveness and price of electric vehicles and electric vehicle batteries.

(According to CNBC)